Deputy government spokeswoman Sasikarn Wattanachan said yesterday that many Thais face challenges obtaining loans from financial institutions due to concerns about repayment risks during the launch of a government programme aimed at boosting pickup truck sales.
Ms Sasikarn made her comments at the launch of "Kraba Pi Mee Klang Kam", or "My Pickup, Government Credit", which will help Thais purchase pickup trucks from now until year-end.
Known for their affordability and durability, pickup trucks are crucial in Thailand's logistics and agricultural sectors.
The Finance Ministry's Thai Credit Guarantee Corporation (TCG) will manage the project, which aims to boost the commercial vehicle market, which has seen a decline in sales.
The project is expected to boost the economy by at least 21 billion baht, with 6,250 vehicles predicted to be sold.
The project's initial guarantee fund is 5 billion baht. Each borrower can receive up to 1.5 million baht in guarantees, with the TCG covering any financial shortfall in case of loan defaults.
In addition, the government will fully cover guarantee fees for citizens during the first three years, while from the fourth to the seventh year, it will partially pay these fees. As a result, guarantee fees will be reduced to 1.5% per year. The programme will run from today to Dec 30.
